This Is Why Bitcoin Might Soon Hit Its All-Time High

Forbes

Steven Ehrlich, the director of digital assets for Forbes, joins "Forbes Talks" to discuss Bitcoin being on the cusp of reaching it's new all time high.  Subscribe to FORBES: https://www.youtube.com/user/Forbes?sub_confirmation=1  Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:  https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript  Stay Connected Forbes newsletters: https://newsletters.editorial.forbes.com Forbes on Facebook: http://fb.com/forbes Forbes Video on Twitter: http://www.twitter.com/forbes Forbes Video on Instagram: http://instagram.com/forbes More From Forbes:  http://forbes.com  Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.

Transcript

00:00 Hi everyone, I'm Rosemary Miller here with Stephen Ehrlich, the Director of Forbes Digital

00:08 Assets here to talk about Bitcoin being on the cusp of reaching its new all-time high.

00:15 Thank you so much for joining me today, Steve.

00:17 Thanks Rosemary.

00:18 So Steve, based on current market trends, what factors do you believe will contribute

00:23 to Bitcoin reaching its new all-time high?

00:26 So Bitcoin has been on a tear in the last six months, the last three months, the last

00:31 month, even this week.

00:33 It just kind of keeps going up and up and up.

00:36 In the last month, it's up about 55 percent.

00:39 The last six months, it's up 158 percent.

00:41 And even in the last day, last 24 hours or so, it's up about another five and a half

00:46 percent.

00:47 And as we're recording this, it's a hair over 67,000.

00:51 Bitcoin's all-time high, which it basically touched twice back in 2021, is 69,000.

01:00 So we're very much within showing distance.

01:02 And this has everything to do with the ETFs that I know we've spoken about in previous

01:08 interviews, which has brought in more than $7 billion in net new demand for these assets.

01:14 $18 billion if you count the flows out of Grayscale, the largest ETF, spot ETF that

01:23 there is right now.

01:24 And I mean, right now, it's kind of we're all kind of waiting with bated breath to see

01:30 if the Bitcoin bulls are able to finally test and maybe push over that threshold and reach

01:36 $70,000 for the very first time.

01:39 It's a very exciting time for people who follow this space.

01:42 Well, Steve, if it actually does surpass $69,000 and reach $70K, do you believe it'll stay

01:48 there?

01:49 I think that's a more important question, to be honest, Rosemary, than whether or not

01:55 it's going to reach it.

01:56 Will it have legs?

01:57 And for that, I think there's a couple of ways to answer the question.

02:01 One, I would not be surprised if it tests this number and then it falls back down into

02:06 the mid-60s or even high 60s, where it is right now.

02:09 And that's simply just because of the way the market's structured.

02:12 And a lot of the technical indicators and signals that I look at from open interest,

02:16 which is approaching an all-time high, to something called a funding rate, which is

02:20 used in offshore derivatives products, where investors or traders that want to go long

02:25 have to compensate traders taking the short end of that.

02:28 All those things are the highest that they've been in three years or so.

02:32 And the last time they were this high, we all remember what happened in 2021 and in

02:37 2022.

02:38 So I would not be surprised at all if we reach this number and then sort of the momentum

02:42 just pauses and maybe there's a bit of a retrenchment.

02:46 Longer term, I am very bullish on Bitcoin and I would expect it to cross $100,000 and

02:51 maybe get into some of the more exuberant predictions that we are seeing across the

02:56 industry.

02:57 But the real question, I think, is not whether we're going to hit $70,000, but whether or

03:03 not it's going to have the legs to stay there.

03:06 And there's just been so much appreciation even in the last month or so that it might

03:11 find hard to sort of push past the exhaustion that I think would come if and when Bitcoin

03:16 reaches that point.

03:17 Well, Steve, are there any challenges or risks that could hinder Bitcoin from reaching this

03:22 new all-time high?

03:26 Good question.

03:27 And right now, there aren't many risks.

03:29 All of the big signals are bullish.

03:32 More and more asset managers are looking to make these ETF products available to customers

03:39 from like the Morgan Stanleys and Wells Fargo's of the world.

03:42 Plus we're about to reach the Bitcoin halving in April, which is actually about five or

03:48 six weeks away.

03:49 That's going to reduce the issuance of new Bitcoin by 50 percent.

03:53 That's always seen as a very bullish momentum.

03:55 So we have a big surge in demand sort of running right into a contraction in supply.

04:02 And that can actually be very bullish.

04:05 And again, it's really important to remember that as opposed to virtually every other digital

04:10 asset in crypto, Bitcoin is one that has regulatory clarity.

04:15 Basically everyone from the SEC to the CFTC to Congress to exchanges, everyone agrees

04:20 Bitcoin is a commodity.

04:21 So that sort of regulatory sort of democracy is not sitting over it.

04:28 So right now we are looking at a very bullish transfer for Bitcoin, but that doesn't mean

04:34 that it's not going to also be volatile.

04:36 Well, Steve, if Bitcoin does indeed surpass its all time high, we'll be chatting again

04:41 soon.

04:42 Absolutely.

04:43 Thanks Rosemary.

04:44 For sure.

04:45 Thanks.

04:46 Thanks.

04:47 Thanks.

04:48 Thanks.

04:49 Thanks.

04:50 Thanks.

04:51 [BLANK_AUDIO]

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